The Effects of Collateral on Firm Performance

This paper examines how collateral and personal guarantees affect firms’ ex-post performance employing a propensity score matching estimation approach. Based on a unique firm-level panel data set of more than 500 small-and-medium-sized borrower firms in Japan, we find that borrowers that provide collateral to lenders experience larger increases in profitability and reductions in riskiness than borrowers that do not. The main channel through which the borrower enhances its profitability is cost-cutting restructuring. These findings are consistent with the hypothesis that collateral reduces moral hazard by providing borrowers with an incentive to enhance their creditworthiness. We find little evidence that improvements in collateralized firms’ performance are driven by the intensified monitoring on the part of lenders, or by borrowing firms’ access to larger amounts of credit.collateral, moral hazard, propensity score

Firm Age and the Evolution of Borrowing Costs: Evidence from Japanese Small Firms

This paper investigates how a firm's borrowing cost evolves as it ages. Using a new data set of more than 200,000 bank-dependent small firms for 1997-2002, we find the following. First, the distribution of borrowing costs tends to become less skewed to the right over time, which can be partially attributed to "selection" (i.e., exits of defaulting firms reduce the total borrowing costs), but is mainly explained by "adaptation" (i.e., surviving firms' borrowing costs decline as they age). Second, the selection process is natural in that firms with lower quality are separated, charged higher borrowing costs, and eventually forced to exit, which contrasts with the results of previous studies on Japan's credit misallocations, such as Peek and Rosengren (2005). Third, in the adaptation process, we find an age dependence of firms' borrowing costs even if we control for firm size.firm age, borrowing cost, selection, credit allocation, reputation

The Effectiveness of Public Credit Guarantees in the Japanese Loan Market

This paper examines the effectiveness of public credit guarantee programs in not only increasing the availability of loans to small and medium enterprises (SMEs), but in also improving the ex-post performance of borrowing firms. Using a unique panel data set, we identify the effects of a massive credit guarantee program implemented by the Japanese government from 1998-2001. While we do find that the availability of loans increased for program participants, when loans were provided by undercapitalized banks the increased liquidity persisted for only a few years. Further, the ex-post performance of program participants, with the exception of firms with sizable net worth, deteriorated relative to their non-participating counterparts.Credit crunch, Small and Medium Enterprises, Loan guarantees, Matching estimation

Rich structural phase diagram and thermoelectric properties of layered tellurides Mo1-xNbxTe2

MoTe2 is a rare transition-metal ditelluride having two kinds of layered polytypes, hexagonal structure with trigonal prismatic Mo coordination and monoclinic structure with octahedral Mo coordination. The monoclinic distortion in the latter is caused by anisotropic metal-metal bonding. In this work, we have examined the Nb doping effect on both polytypes of MoTe2 and clarified a structural phase diagram for Mo1-xNbxTe2 containing four kinds of polytypes. A rhombohedral polytype crystallizing in polar space group has been newly identified as a high-temperature metastable phase at slightly Nb-rich composition. Considering the results of thermoelectric measurements and the first principles calculations, the Nb ion seemingly acts as a hole dopant in the rigid band scheme. On the other hand, the significant interlayer contraction upon the Nb doping, associated with the Te p-p hybridization, is confirmed especially for the monoclinic phase, which implies a shift of the p-band energy level. The origin of the metal-metal bonding in the monoclinic structure is discussed in terms of the d electron counting and the Te p-p hybridization.Comment: 16 pages, 6 figures, 1 table, to be published in APL Material

Life cycle management of concrete structures based on sustainability indicators

A concrete structure should be sufficiently planned, designed, executed and maintained to ensure its requirements during the life cycle. However, structures suffering from serious deterioration in structural members and sometimes subsequent loss in sustainability have been often found due to various reasons. One of the reasons is lack of total management for the structure. To meet these facts, it is extremely important to pursue coordination of engineering work in the design, execution and maintenance stages. The life cycle management is an organized system to support engineers decision to realize sufficient sustainability of the structure in the design, execution, maintenance, and all related work during its life cycle. The life cycle management is implemented based according to the life cycle management scenario in which balance of several sustainability indicators should be considered with ensuring overall sustainability. The sustainability indicators will be determined from the social, environmental and economic points of view. The scenario should be regularly reviewed based on the PDCA cycle and be updated if necessary. This paper deals with the concept and framework of the life cycle management of concrete structures to ensure sustainability during the structural life

Origin of the anomalous mass renormalization in metallic quantum well states of correlated oxide SrVO3_3

$In$ $situ$ angle-resolved photoemission spectroscopy (ARPES) has been performed on SrVO$_3$ ultrathin films, which show metallic quantum well (QW) states, to unveil the origin of the anomalous mass enhancement in the QW subbands. The line-shape analysis of the ARPES spectra reveals that the strength of the electron correlation increases as the subband bottom energy approaches the Fermi level. These results indicate that the anomalous subband-dependent mass enhancement mainly arises from the quasi-one-dimensional character of confined V $3d$ states as a result of their orbital-selective quantization.Comment: 6 pages, 3 figure